10 Jan 2013 07:00
Goals Soccer Centres PLC
("Goals" or the "Company")
Post Close Trading Update
Goals Soccer Centres PLC, the UK's premier operator of next generation outdoor 5-a-side soccer centres with 43 centres in the UK and one in Los Angeles, USA, is pleased to announce a trading update for the year ended 31 December 2012, in advance of the release of the Company's Final Results on 26 February 2013.
Trading for the year was in line with market expectations with overall sales increasing by 6% to £32m (2011: £30.4m) and like for like sales increasing by 2%. The Company successfully appealed HMRC's decision to charge VAT on league income during the year and this increased like for like sales by 2%.
In order to focus on strong cash generation and enhance return on capital from recently opened centres, the Board has decided to postpone further new site openings. This strategic move will enable the Board to meet the key objective of using strong cash flow to further reduce net bank debt which has been reduced to £50m from £54m at 30 June 2012. The Group's net bank loans are £48.8m compared to £52.6m at 30 June 2012. Subject to satisfactory prevailing economic conditions, the Board intends to return to opening additional centres from 2014.
Our facility in Los Angeles has continued to trade well during the period. Due to this being the initial development centre in the US market the Company invested £4.7m to construct this facility. The Company now has a more detailed understanding of the specific requirements in the US and if further centres are developed they will cost significantly less. The Board has reviewed the net present value of the Los Angeles centre based on current trading levels and this has indicated that the value is impaired by £2m.
The Board believes that the there is an opportunity to increase brand awareness, sales and profits through greater investment in social media. A detailed plan has been prepared to improve our online activity and develop a significant social media presence during 2013. Achievement of this plan will necessitate a change in the IT infrastructure used to run our systems which will result in some of our existing Smart Centre system becoming redundant. As a result the value of those elements of the Company's IT infrastructure and software development costs will be reduced by £1.8m.
Following successful marketing campaigns during February and September 2012 the Company has entered into a new brand partnership with talkSPORT, the UK's biggest national commercial sports radio station. . This partnership provides unrivalled access to airtime at a significant discount to market rates. Our first official advertising campaign in partnership with talkSPORT commenced on 4 January 2013.
Whilst 2013 looks likely to be another challenging year for the UK consumer, Goals operates in a resilient market place with a favourable price point and a market leading position. This provides the necessary scale to cope with any challenges ahead and the Board remains confident of continued progress in 2013.
All figures quoted above are unaudited.
10 January 2013
Enquiries :
Goals Soccer Centres plc | Today: 020 7457 2020 |
Keith Rogers, Managing Director | Thereafter: 01355 234 800 |
Bill Gow, Finance Director | |
Canaccord Genuity | Tel: 020 7523 8350 |
Adam Miller | |
Rob Collins | |
College Hill | Tel: 020 7457 2020 |
Matthew Smallwood | |
Jamie Ramsay |